Islamic Financial Behavior of Muslim Millennials in Indonesia

Abstract

Individuals who cannot manage their finances well will bring up various financial problems that will affect the mental and physical health of an individual. This study aims to measure how the behavior of financial management with the theory of behavioral finance by linking the level of Islamic financial literacy, life style, internal control locus level on the level of financial management behavior in Muslim millennials in Indonesia. The research method used is a quantitative method with a descriptive and causal research design, the data analysis technique will use is SEM-PLS, while the number of samples taken is 250 respondents from various provinces in Indonesia. The results showed that Islamic financial literacy has a positive and significant effect on Islamic financial behavior, lifestyle has a negative effect on Islamic financial behavior and the level of internal control locus has a positive and significant effect on Islamic financial behavior in the Muslim millennial generation in Indonesia. The implications of this study are expected that the Muslim millennial generation in Indonesia needs to increase the level of Islamic financial literacy, adjust lifestyles in accordance with their financial capabilities. It can reach the good Islamic financial management behavior in daily life.